Cash Twist Flattens After NSW Holiday

The major benchmarks along the cash ACGB curve run 5.0bp cheaper to 3.5bp richer, twist flattening, pivoting around 6s, with the cash curve playing catch up to market gyrations since Friday’s Sydney close owing to the observance of a NSW holiday on Monday. A reminder that data releases out of the U.S. and Europe exacerbated prevailing recession-related worry on Monday, while Sino-U.S. tensions surrounding Nancy Pelosi’s seemingly impending visit to Taiwan are also in the mix. YM is +3.5 and XM is +8.5 with the latter operating a shade above its overnight high, while bills run flat to +3 through the reds.

• ACGBs were little moved on the release of weekly ANZ-Roy Morgan Consumer Confidence data, which revealed a 2.1% improvement over the previous week on the back of declining petrol prices., although the metric is still comfortably below the breakeven 100 line.
• Australian housing finance data and building approvals are due in <1 hour, although the proximity to the RBA’s monetary policy decision later in the day will likely dampen any impact the releases will have on the ACGB space.